DPSG released its H1 & Q2 results today

DPSG released its H1 & Q2 results today

Dr Pepper Snapple Group today (24 July) posted a rise in second-quarter profits and sales. Here, just-drinks takes a closer look at the company's performance in the period:

Bottler case sales volumes

In Q2, bottler case sales (BCS) volumes rose 1% with carbonated soft drinks (CSDs) increasing 2% and non-carbonated beverages (NCBs) dropping by 4%, the company said. 

In CSDs, Dr Pepper BCS volumes decreased 1%. The “Core 4” brands, which include the low-calorie Ten range, increased 2% driven primarily by a high-single-digit increase in Canada Dry, which was partially offset by a low-single-digit decrease in A&W. Sunkist soda and 7UP were flat in the period. Both Peñafiel and Schweppes grew double digits. 

In NCBs, Hawaiian Punch volumes fell12%. Snapple declined 3%, primarily driven by a “de-emphasis” on value products, DPSG said. Snapple Premium increased low-single-digits, and Mott’s was flat in the period.

By geography, US and Canada volumes were flat, and Mexico and the Caribbean volumes rose 6%.  

Beverage concentrates

Net sales for Q2 decreased 2% as concentrate price rises taken earlier in the year were offset by higher discounts, the group said. 

Packaged beverages

DPSG reported that net sales for the quarter climbed 1% on favourable product mix and an increase in contract volume, which was partially offset by declines in branded volumes.

Latin America Beverages

Net sales for the quarter increased 24% reflecting higher retail pricing associated with the pass-through of the sugar tax in Mexico, favourable mix and a 6% volumes increase driven primarily by innovation on Peñafiel. 

Sales Volumes

For the quarter and year-to-date, sales volumes increased 1%. 

Definitions

BCS volumes - Sales of finished beverages, in equivalent 288oz cases, sold by the company and its bottling partners to retailers and independent distributors and excludes contract manufacturing volume

Sales volumes - Sales of concentrates and finished beverages, in equivalent 288oz cases, shipped by the company to its bottlers, retailers and independent distributors and includes contract manufacturing volumes.

Expert analysis

Dr Pepper Snapple Group Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Dr Pepper Snapple Group Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Synopsis Canadean's "Dr Pepper Snapple Group Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The...read more